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Correspondence Agenda - 2020/07/09 The Corporation of the Township of Malahide CORRESPONDENCE AGENDA July 9, 2020 7:30 p.m. (F) Correspondence: 1. Association of Municipalities of Ontario - Watch File dated June 18, June 25, and July 2, 2020. (Pages C3 - 10) 2. Township of Lake of Bays, County of Grey, and Municipality of West Elgin Resolution supporting High Speed Internet Connectivity in rural Ontario. (Malahide Township supported a similar resolution on June 4, 2020.) (Pages C11 - 15) 3. Municipality of Mississippi Mills Resolution requesting Federal and Provincial Governments to include rural broadband investment as part of economic recovery shovel-ready projects for municipalities. (Pages C16 -17) 4. County of Elgin Correspondence requesting support of the Western Ontario $750M Broadband Fund. (Pages C18 - 24) 5. Municipality of Grey Highlands and Municipality of West Elgin Resolution supporting Provincial and Federal Governments to work together to investigate the feasibility of implementing a universal basic income program. (Pages C25 - 28) 6. Town of Renfrew Resolution requesting Provincial and Federal applications. (Pages C29) 7. City of Sarnia Resolution requesting Province to implement changes in Long Term Care Homes, including labour hours, inspections, and ending neglect and unacceptable conditions. (Pages C30 - 31) 8. Town of Kingsville Resolution requesting the Provincial Government to expand their Rent Assistance Program to include all businesses in a lease -above- on commercial/residential ratio. (Pages C32 - 33) 9. County of Elgin Correspondence to Elgin-Middlesex-London MPP, Elgin- Middlesex-London MP, Federal Minister of Finance, Provincial Minister of Finance, advocating for stable Federal Transfer Payments to Canadian Municipalities in 2021. (Pages C34 - 37) 10. Town of Aylmer Correspondence and Report regarding Service Delivery Review participation and decisions regarding Shared Services. (Pages C38 - 52) 11. Ministry of Municipal Affairs and Housing Correspondence regarding extension of Municipal Modernization Program deadlines. (Pages C53) 12. Ministry of Municipal Affairs and Housing Correspondence advising the temporary suspension of the Planning Act timelines ends on June 22, 2020. (Pages C54 - 55) 13. Aylmer Cemetery Board Thank you for municipal grant. (Page C56) 14. Municipality of Central Elgin Notice of Application for Zoning By-law Amendments relating to the following properties: - 5013 Yarmouth Centre Road. (Page C57) - 43099 Ron McNeil Line. (Page C58) - 44222 Sparta Line. (Page C59) 15. Town of Aylmer Notice of Passing of Zoning By-law Amendment relating to property at 50-52 Victoria Street South. (Page C60) 16. County of Elgin Land Division Committee Notice of Expiry of Appeal Period for Severance Application #6/20 (Norman and Beverly Stansell) relating to property at Lots 28 and 29, Concession 6. (Page C61) 17. Elgin Area Primary Water Supply System Financial Statements and Independent Auditors Report Year ended December 31, 2019. (Pages C62 - 78) Rowan’s Law Fisheries Act Rowan’s Law Fisheries Act Bill 184, Protecting Tenants & Strengthening Community Housing. CORPORATION OF THE MUNICIPALITY OF MISSISSIPPI MILLS 3131 OLD PERTH ROAD PO BOX 400 RR 2 ALMONTE ON K0A 1A0 PHONE:613-256-2064 FAX:613-256-4887 WEBSITE:www.mississippimills.ca VIA E-MAIL June 19, 2020 Hon. DougFord Premier of Ontario doug.fordco@pc.ola.org Hon. Steve Clark Minister of Municipal Affairsand Housing minister.mah@ontario.ca Hon. VicFedeli Minister of Economic Development, Job Creation and Trade MEDJCT.Minister@ontario.ca Hon. Lisa MacLeod Minister of Heritage, Sport, Tourism and Culture Industries Minister.MacLeod@ontario.ca Hon. Stephen Lecce Minister of Education minister.edu@ontario.ca Hon. Laurie Scott Minister of Infrastructure laurie.scottco@pc.ola.org Dear Premierand Ministers, RE:Support for Rural Broadband On behalf of the Council of the Corporation of the Municipalityof Mississippi Mills, this is to adviseyou that the following resolution was adopted by Council at its meeting held on June 16, 2020. Resolution No. 246-20 Moved by CouncillorMaydan Seconded by CouncillorDalgity WHEREASin December 2016 the Canadian Radio-television and Telecommunications Commission declared broadband internet an essential service for Canadians; AND WHEREASaccess to internet in many rural communities in Ontario is limited or non-existent; AND WHEREAScurrent broadband investment projects across Ontario will still leave many residents unserved; AND WHEREASthe COVID-19 pandemic has underscored the digital divide leaving many rural residents unable to participate in e-commerce, online schooling, are unable to move businesses online or access healthcare and other services online; AND WHEREAScommunities and municipalities are developing economic recovery plans; AND WHEREASthere may be potential federal and provincial fundingfor shovel- ready infrastructure programs to kick-start the economy; THEREFORE BE IT RESOLVED THATthe Municipality of Mississippi Mills calls on the provincial and federal governments to include rural broadband investment as part of the economic recoveryshovel-ready projects for municipalities; AND THATCouncil direct staff to circulate this resolution to the Prime Minister of Canada; the Federal Minister of Rural Economic Development; the Federal Minister of Innovation, Science and Industry; the Federal Minister of Economic Development; the Minister of Infrastructure and Communities; the Federal Minister of Health; the Premier of Ontario; the Minister of Municipal Affairs; the Minister of Economic Development, Job Creation and Trade; the Minister of Heritage, Sport, Tourism and Culture Industries; the Minister of Education; the Minister of Infrastructure; and all Ontario Municipalities; the Association of Rural Municipalities of Ontario; the Association of Municipalities of Ontario and The Federationof Canadian Municipalities. CARRIED Should you have any questions please feel free to follow up with our office directly at 613-256-2064or jharfield@mississippimills.ca Kind Regards, Jeanne Harfield Clerk June25, 2020 DearLocalMunicipal Partners, Re: WOWCAppeals for Equitable Broadband Funding for Southwestern Ontario rd At the June23County Council Meeting, Council resolved to join the Member Counties and LocalMunicipalities oftheWestern OntarioWardens Caucus (WOWC) in advocatingfor the region’s fair shareof the CRTC’s $750MBroadband Fund.WOWC and its Member Counties andocalunicipalities willbe advocatingfor 10% (or$75M) of thefunding asthe region represents 10% of thepopulation of Canada.WOWC will also advocatefor the region’sfair share of the Innovation, Science andEconomic Development (ISED) $1.7B Universal Broadband Fund.Applicationsare opening this yearandWOWC will once again be advocatingfor 10% (or $170M)for Southwestern Ontario based on population. Advocacywill take theformof a letter writing campaign tothe CEOof the CRTCand the Hon. Navdeep Bains, Minister of Innovation, Science and Industry. Pleasefind attached the advocacy appealfromtheWOWCand template letters of supportfor your consideration. Yours very truly, Julie Gonyou, Chief Administrative Officer Enclosure WOWC Appeals to the CRTC for Equitable Broadband FundingforSouthwestern Ontario Currently more than half a million residents are lacking access to high-speed broadband across Southwestern Ontario. In the past funding for broadband in Southwestern Ontario has been undervalued and overlooked. To ensure fair and equitable funding is allocated to support broadband infrastructure projects in rural Southwestern Ontario, the Western Ontario Wardens’ Caucus,has issued a letterto the Canadian Radio-television and Telecommunications Commission to advocatefor the region’s fair share of funding to support Southwestern Ontario broadband infrastructure projects. Your advocacy efforts aregreatly needed, and we would encourage you to write to Ian Scott,Chairperson and Chief Executive Officer,Canadian Radio-television and Telecommunications Commission,to ensure that the residents living in our underserved communities do not go unnoticedand that adequate and equitable funding for the regionisrequired. Attached is a template letter of support for your consideration. Sincerely, Jim Ginn Chair WesternOntarioWardens' Caucus June23, 2020 Ian Scott Chairperson andChief Executive Officer Canadian Radio-television andTelecommunications Commission ian.scott@crtc.gc.ca Re: Fair and equitable fundingto support broadband infrastructure projects in Southwestern Ontario Dear Mr. Scott, As theWarden of ElginCounty,I am writingto you today to request the allocation offair and equitable funding to support broadband infrastructure projects in rural Southwestern Ontario, including in underserved areas of Elgin County. SouthwesternOntariobroadband funding can notbe undervalued.It hasbeenestimated that it would cost approximately $2.5 billion to provide afibre-basedsolutionto address all Southwestern Ontario’s underserved areas, including in areas ofElgin County–wireless could help to reduce these costs in some areas.The region which is 90% ruralandrepresents 10%ofthe Canadian population hasbeen overlooked in the pastforfunding. Connectivity is key tothe socialand economicsuccess of our communities–weneed toensure that theresidents living in our underserved communitiesdo notgo unnoticed.Adequate and equitable fundingfortheregion isrequired to ensurethat broadband, an essential utility, is accessible forall. The COVID-19 outbreakhas laid bare the challenges our underserved communities inElgin County and across Southwestern Ontario arefacing. In today’s unprecedented times, where children are required to attend school remotely, online ordering is the new norm and virtual meetings are now a workplace requirement, broadband is not a luxury, it is essential. On behalf ofElgin County, we are respectively asking the Canadian Radio-television and TelecommunicationsCommission to supportSouthwesternOntario broadband infrastructure projects. Sincerely, cc.The Honourable Steven Guilbeault Minister of Canadian Heritage Steven.Guilbeault@parl.gc.ca The Honourable Navdeep Bains Minister of Innovation, Science and Industry Navdeep.Bains@parl.gc.ca The Honourable Catherine McKenna Minister of Infrastructure and Communities Catherine.McKenna@parl.gc.ca The Honourable Maryam Monsef Minister of Rural Economic Development Minister for Women and Gender Equality Maryam.Monsef@parl.gc.ca Karen Vecchio Member of Parliament for Elgin-Middlesex-London karen.vecchio@parl.gc.ca The Honourable Laurie Scott Minister of Infrastructure, Ontario laurie.scott@pc.ola.org Heads of Municipal Council (Western Ontario) WOWC Calls on Government for Increased Broadband Funding The Western Ontario Wardens’ Caucus today issued a letter to the federal government to seek immediate and increased funding to support the expansion of broadband infrastructure in our underserved communities across Southwestern Ontario. The Caucusisurging the Canadian government to solve a fundamental issue and provide a basic need to all residents currently living without access to reliable high- speed internet. Your support is greatly needed,and we would encourage you to write to The Honourable Navdeep Bains, Minister of Innovation, Science and Industry to urge that the government make a substantial investment to ensure that broadband, an essential utility, is accessible and available for all. Attached is a template letter of support for your consideration. Sincerely, Jim Ginn Chair WesternOntarioWardens' Caucus June 23, 2020 The Honourable Navdeep Bains Minister of Innovation, Science and Industry Navdeep.Bains@parl.gc.ca The Honourable Catherine McKenna Minister of Infrastructure and Communities Catherine.McKenna@parl.gc.ca The Honourable Maryam Monsef Minister of Rural Economic Development Minister for Women and Gender Equality Maryam.Monsef@parl.gc.ca Re: Urgent and immediate funding request to supportthe expansion of broadband infrastructure in Southwestern Ontario Dear Ministers, As theWarden of Elgin County, I am writing you today to seek urgent and immediate funding to support the expansion of critical broadband infrastructure across Southwestern Ontario, including in underserved areas of Elgin County. Efforts at the local, federal and provincial level have been underway to provide all Ontarians, no matter where they live, with access to high-speed internet. This is not an overnight process; however, the COVID-19 outbreak has laid bare the challenges our underserved communities in Elgin Countyand across Southwestern Ontario are facing. In today’s unprecedented times, where children are required to attend school remotely, online ordering is the new norm and virtual meetings are now a workplace requirement, broadband is not a luxury, it is essential. Connectivity is key to the social and economic success of our communities – we need to invest in the future of our communities. Increased funding is urgently needed to boost the pace and scale of broadband deployment efforts to address gaps in service and provide digital equality for all in Canada. It has been estimated that it would cost approximately $2.5 billion to provide a fibre-based solution to address all Southwestern Ontario’s underserved areas – wireless could help to reduce these costs in some areas. Adequate funding is required to ensure that broadband, an essential utility, is accessible for all. The message to you is clear. Southwestern Ontario broadband funding can not be undervalued. The region represents 10% of the Canadian population and 25% of the population of Ontario. Adequate and equitablefunding for all underserved municipalities within the region is requiredto ensurethat broadband, an essential utility, is accessiblefor all. On behalf of Elgin County,weareurging the federal government tosolve a fundamentalissueand provide a basic need toall our residentscurrently living without access to reliable high-speedinternet. The longer our communities are left without,thegreaterthe people and businesses of Southwestern Ontario and Countywill sufferfrom socialand economic inequalities.We are asking the Canadian government to takeimmediateactionand makeasubstantial investmentin high-speed connectivity. Sincerely, cc.The Honourable Laurie Scott Minister of Infrastructure, Ontario laurie.scott@pc.ola.org Karen Vecchio Member of Parliament for Elgin-Middlesex-London karen.vecchio@parl.gc.ca Heads of Municipal Council (Western Ontario) CORPORATION OF THE TOWN OF RENFREW RESOLUTION NO. 2020 - 06 - 44 WHEREAS AND WHEREAS AND WHEREAS AND WHEREAS Investing in Canada Infrastructure Program: Community, Culture and Recreation Stream AND WHEREAS the Investing in Canada Infrastructure Program: Green Stream Investing in Canada Infrastructure Program: Rural & Northern Stream AND WHEREAS NOW THEREFORE BE IT RESOLVED Investing in Canada Infrastructure Program AND FURTHER THAT - CARRIED - 2021 Division Road North Kingsville, Ontario N9Y 2Y9 Phone: (519) 733-2305 www.kingsville.ca kingsvilleworks@kingsville.ca June 29, 2020 The Honourable DougFord(premier@ontario.ca) Premier of Ontario Toronto, Ontario M7A 1A1 -and to- The Honourable Rod Phillips(rod.phillips@pc.ola.org) Minister of Finance th Frost Building South; 7Floor Toronto, Ontario M7A 1Y7 Dear Premier Fordand Minister Phillips: RE: Kingsville Council request that the Rent Assistance Program to include all -above- properties without a cap on commercial/residential ratio At its Regular Meeting of June 22, 2020, Kingsville Council resolved the following: 391-2020 Moved ByCouncillor Kimberly DeYong Seconded ByCouncillor Larry Patterson Whereas the COVID-19 Pandemic has greatly impacted the business community in the Town of Kingsville; And Whereas the Province of Ontario has provided financial assistance including a multi-level Rent Assistance program to the business community impacted by the COVID-19 Pandemic; And Whereas the Rent Assistance program offered by the Province of Ontario established an arbitrary cap on multi-use properties where it is common for -above- Street corridors; And Whereas Kingsville, particularly in our downtown business centres, has several properties with residential-above-commercial where the ratio of commercial storefront businesses represents less than 30 per cent of the entire building, thus leaving a gap where local business owners cannot qualify for rent relief with their willing landlords; Expansion Project Report identified that Kingsville businesses would benefit from the Province expanding the Rent Assistance program to include all commercial lease properties regardless of overall footprint. Now Therefore Be It Resolved That the Town of Kingsville requests that the Province of Ontario expand their Rent Assistance program to include all -above- properties without a cap on commercial/residential ratio; And Finally, That this Resolution becirculated to the Premier, Doug Ford, the Minister of Finance, Rod Phillips, our local MPP Taras Natyshak, and all Ontario municipalities requesting their support. CARRIED Thank you for your consideration. Sincerely, Jennifer Astrologo, Director of Corporate Services/Clerk Corporate Services Department jastrologo@kingsville.ca /sjk CC: Taras Natyshak, MPP (tnatyshak-qp@ndp.on.ca) CC: All Ontario Municipalities Karen Vecchio, MP Elgin-Middlesex-London 203-750 Talbot St. St. Thomas, ON N5P 1E2 Karen.vecchio@parl.gc.ca June 22, 2020 Dear Ms. Vecchio, Please see attached the correspondence sent to The Honourable Bill Morneau, Minister of Finance on behalf of Elgin County Council and its Partner Municipalities. On behalf of Elgin County and its Partner Municipalities, I am advocating for stable Federal transfer payments to Canadian municipalitiesin 2021 and subsequent years as municipalities deal with the significant financial strain placed on both local governments and residents as a result of the COVID-19 pandemic. Transfer payments from the Federal government are a critical source of municipal revenuefor the County of Elgin and its Local Municipal Partners. A reduction in these transfers could have a significant impact on our ability to deliver the caliber of services to which our residents and businesses have become accustomed. These services will be increasingly important as we being the challenging process of adjustment and recovery in the wake of COVID-19. Respectfully, Warden Dave Mennill Enclosure. The Honourable William Francis Morneau Department of Finance Canada 90 Elgin St. Ottawa, ON K1A 0G5 Bill.morneau@canada.ca June 22, 2020 Dear MinisterMorneau, On behalf of Elgin County and its Partner Municipalities, I am respectfully requesting assurances that Federal transfer payments to Canadian municipalitiesremain stable in 2021 and subsequent years as municipalities recover from the economic hardships associated with COVID-19. Municipalities play acrucialrole in delivering services that affect the day to day lives of all Ontarians. Additionally, municipalities are responsible forensuring the maintenance of safe and accessible infrastructure for our residents and business communities. Transfer payments from the Federal government are a critical source of municipal revenue, particularly for small rural communities with limited tax bases. These payments ensure that residents in these communities have access to the same caliber of services as their urban counterparts. A reduction in these transfers could have a significant impact on municipalities’ ability to deliverthese services. In addition to existing pressures of an aging population, rapidly changing technologies, and a lack of broadband internet connectivity, rural communitiesare now also facing unprecedented financialchallenges in the face of the COVID-19 pandemic. Municipalities are on the front lines of the pandemicandare experiencing non-recoverable lossesas a result of dwindling revenues combined with the considerable costs of implementing new health and safety measures. The COVID-19 pandemic is a global crisisthat has affected all levels of government and all industries. Our residents have experiencedhigh levels ofeconomic uncertainty and unemployment. As service providers, it is important that municipalities are able to rely on a stable source of funding inorder to continue to serve our residents and local businesses as they begin the challenging process of economic recovery.I again respectfully request that the Ministry of Finance provide confirmation that Federal transfer payments to municipalities will remain stable throughout these challenging times. Respectfully, Warden Dave Mennill cc. Municipal Partners Honourable Jeff Yurek, Minister of the Environment, Conservation and Parks Suite 201 750 Talbot St. St. Thomas, ON N5P 1E2 Jeff.yurek@pc.ola.org June 22, 2020 Dear Minister Yurek, Please see attached the correspondence sent to The Honourable Rod Phillips, Minister of Finance on behalf of Elgin County Council and its Partner Municipalities. On behalf of Elgin County and its Partner Municipalities, I am advocating for stable Provincial transfer payments to Canadian municipalitiesin 2021 and subsequent years as municipalities deal with the significant financial strain placed on both local governments and residents as a result of the COVID-19 pandemic. Transfer payments from the Provincialgovernment are a critical source of municipal revenuefor the County of Elgin and its Local Municipal Partners. A reduction in these transfers could have a significant impact on our ability to deliver the caliber of services to which our residents and businesses have become accustomed. These services will be increasingly important as we being the challenging process of adjustment and recovery in the wake of COVID-19. Respectfully, Warden Dave Mennill Enclosure. The Honourable Rod Phillips Ministry of Finance, Ontario th Frost Building South, 7Floor 7 Queens Park Cres. Toronto, ON M7A 1Y7 Rod.phillips@pc.ola.org June 22, 2020 Dear MinisterPhillips, On behalf of Elgin County and its Partner Municipalities, I am respectfully requesting assurances that Provincialtransfer payments to Canadian municipalitiesremain stable in 2021 and subsequent years as municipalities recover from the economic hardships associated with COVID-19. Municipalities play acrucialrole in delivering services that affect the day to day lives of all Ontarians. Additionally, municipalities are responsible forensuring the maintenance of safe and accessible infrastructure for ourresidents and business communities. Transfer payments from the Provincialgovernment are a critical source of municipal revenue, particularly for small rural communities with limited tax bases. These payments ensure that residents in these communities have access to the same caliber of services as their urban counterparts. A reduction in these transfers could have a significant impact on municipalities’ ability to deliverthese services. In addition to existing pressures of an aging population, rapidly changing technologies, and a lack of broadband internet connectivity, rural communitiesare now also facing unprecedented financialchallenges in the face of the COVID-19 pandemic. Municipalities are on the front lines of the pandemicandare experiencing non-recoverable lossesas a result of dwindling revenues combined with the considerable costs of implementing new health and safety measures. The COVID-19 pandemic is a global crisisthat has affected all levels of government and all industries. Our residents have experiencedhigh levels ofeconomic uncertainty and unemployment. As service providers, it is important that municipalities are able to rely on a stable source of funding in order to continue to serve our residents and local businesses as they begin the challenging process of economic recovery.I again respectfully request that the Ministry of Finance provide confirmation that Provincialtransfer payments to municipalities will remain stable throughout these challenging times. Respectfully, Warden Dave Mennill cc. Municipal Partners June 16, 2020 Township of Malahide 87 John Street South Aylmer, ON N5H 2C3 Attention: Michelle Casavecchia-Somers, Chief Administrative Officer/ Clerk Via email: mcasavecchia@malahide.ca Town of Aylmer Resolution 172-20 – ServiceDelivery Review Participation Please be advised that at their Regular(Virtual)Meeting held on June 15, 2020, the Council of the Town of Aylmer passed the following resolution: Resolution No. 172-20 Moved by Councillor Oslach and seconded by Councillor Hamm: That Report CAO 49-20 entitled Service Delivery Review Participation be received for information; and, That Council authorize an analysis for joint/shared services with municipal partners in close geographical proximity (Bayham, Malahide, Central Elgin, Aylmer) and participate in the Service Delivery Review discussions with the Township of Malahide (and others), it being notedthat staff priority will be for managing the needs of the current declared emergency; and, That the review for Planning and Development is not supported at this time; and, That the review for Fire Service is deferred until the approved 2020 Fire Service Level Review project is completed; and, That the review for Recreation Services is deferred until the Town of Aylmer has undertaken an updated Parks and Recreation Master Plan; and further, That any proposed shared/joint services discussions are presented to Council prior to developing significant work plansor financial commitments. The motion is Carried. Any questions or concerns may be directed to the attention of Jennifer Reynaert, Chief Administrative Officer/ Deputy Clerk. Regards, Josh Brick Director of Legislative Services/ Clerk jbrick@town.aylmer.on.ca CC:Jennifer Reynaert, Chief Administrative Officer/ Deputy Clerk AGENDA ITEM #(b) Service Delivery Review Participation Report Title: June 15, 2020 Submitted for: Jennifer Reynaert, Chief Administrative Officer/ Deputy Report Author: Clerk Receive for InformationRecommendation Recommendation: ThatReportCAO49-20entitledService Delivery Review Participation be receivedfor information; and, That the Council authorize an analysis for joint/shared services with municipal partners in close geographical proximity (Bayham, Malahide, Central Elgin, Aylmer) and participate in the Service Delivery Review discussionswith the Township of Malahide(and others), noting that staff priority will be for managing the needs of the current declared emergency; and, That the review for Planning and Development is not supported at this time; and, That the review for Fire Service is deferred until such time as theapproved 2020 Fire Service Level Reviewprojectis completed; and, That the review for Recreation Services is deferred until the Town of Aylmer has undertaken un updated Parks and Recreation Master Plan;and further, That any proposed shared/joint servicesdiscussionsare presented to Council prior to developing significant work plansor financial commitments. Background and Analysis: As previously reported to Council the Township of Malahide received Provincial funding in the amount of $120,000to undertake a Service Delivery Review under the Municipal Modernization Program. The awarded funding amount allowed for theTownshipstaff to expand the project deliverables from a review of their own servicesto include a review of potential opportunitiesfor joint and/or shared services with Malahide, Bayham, Central Elgin and Aylmer. Page 76 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... AGENDA ITEM #(b) Of note, the Town of Aylmer made application and was unsuccessful under the Municipal Modernization Program for service delivery review although the request for proposalindicated that Council was interested in investigating further opportunities for shared and/or joint service agreements with municipal and private partners. Unfortunately,the Town did not receive funding to engage an independent consultant that would better ensure equal deliverables for the residents of Aylmer. With the Township’s success in an expanded scope, council may wish to request the Ministry reconsider the original proposal submitted by the Town of Aylmer. The Township enhanced the project deliverables as a result of the funding provided and following interview with senior staff at the Township, the consultant and staff brought forward the enhanced project plan for Malahide Council to consider. Excerpts of the program analysis presented to the Township of Malahide by the consultant suggested the following: Shared Services with Other Elgin Municipalities Development Approvals Fire & Emergency Services Others that emerge Recreation Service Model Rationalization Practical/rigorous service model re-design that by-passes expensive master plan approach Related to the items already specifically identified by the Township and the consultant, Aylmerstaff can provide the following feedback and recommendation for Council to consider: The five-yearproject and capital plans approved by Council are attached with this report for reference. Long range plans have been developed that address the replacement of assets as well as projects that supports the Council strategic plan. Development Approvals: It is unlikely to be any benefit for Aylmer to analyze the Planning and Development as joint service. Staff have reviewed and modified the planning and development areasand have achieved improved customer service and efficienciesover the past few years. Additionally, because the rural and urban areas have different approaches and priorities where planning and development are concerned its highly unlikely those area will marry up well. To further complicate matters the Official Plan and zoning documents are significantly different and guidecommunity priorities differently related to planning and development. Page 77 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... AGENDA ITEM #(b) Fire & Emergency Services: The development of the current police costing has been undertaken at a staff level and AylmerCouncil has been awaiting a response to the proposal submitted. Council identified on May 25, 2020 that the police costing proposal should take priority to the review of other servicesas a part of this Service Delivery Review. A review of fire services should be postponed until such time as the Town’s Fire Service Level Review has been completed. This was an approved 2020 project which is underway. It is anticipated that Council will receive the results of this analysis by the end of summer. The Township has completed a similar study which has already resulted in some restructuringfor that community. When the Town of Aylmer has completed that review, Council will have information related to the needs in the community as well as how to manage growth in thefuture prior to contemplating the provision of service outside the boundaries. Recreation Service Model Rationalization: As part of our budget planning process it wasidentified that the Town should update its Parks and Recreation Master Plan. This was slated to occur in 2021 using a portion of the Municipal Modernization Grant. The completion of this review will identify the desired levels of service of Aylmer residents. This would be a logical starting point for review of recreational services. Before significant enhancements in recreation are madein Aylmer as a result of this study, it may be mutually beneficial to share in the costs of additional/enhance services. The concept of joint/shared services is not a new one and as Council is aware several joint and shared service agreements already exist with several municipal partnersor private companies. These arrangements have historically been the result of obvious opportunities for cost sharing of legislated servicesor the most cost-effective provision of service. The Town has arrangements for several joint/shared services including: Assessment appeal process-Elgin County Cooperative Purchasing-Elgin/Middlesex/Oxford East Elgin Community Complex-Aylmer/Malahide Accessibility Coordinator-Elgin County Employee Benefit Consortium-Elgin County Elections-East End Municipalities (some aspects) Fire Mutual Aid-All lower tier municipalities in Elgin Fire Dispatch-Town of Tillsonburg Fire Communications Equipment-All lower tier municipalities in Elgin Police Dispatch-City of St. Thomas GIS Services-Malahide Winter Patrols-Malahide Sewage Treatment-OCWA Water/Sewer Billings-ERTH Recycling-City of London Garbage Collection-Antonissen Trucking Page 78 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... AGENDA ITEM #(b) Garbage Disposal-City of Toronto Water systems outside Aylmer-Primary and Secondary Water Distribution Systems Pool programming-YWCA By-Law Enforcement and Property Standards-MEU Animal Control-City of St. Thomas After Hours Emergency Calls-Spectrum Communications When contemplating joint/shared services there must be a win/win for all parties. That can mean enhanced service at no or minimal cost increases or alternatively cost savings for the same levels of service. During preliminary discussions with the consultant it was noted that Aylmer is the only lower tier municipality in Elgin that is 100% urban and is contained in a very small geographical area. These factors have caused for service misalignment when looking at opportunities in the past for joint/shared service with other municipalities. An urban center has different priorities than those having more rural and agricultural interests which cause significant differences in service levels. In addition, the condensed geography lends itself to more cost-effective service provision simply because of the size and condensed boundaries (e.g. snow removal, garbage collection contracts, fire coverage, police coverage). Additionally, during these preliminary discussions, it was identifiedthat an analysis of service levels is legislatively required for the continued development of our asset management plans. The most optimal review for marrying up services should occur after the levels of services are defined and quantified.In fact, the Town of Aylmer RFP for service delivery reviewthat did not receive Provincial funding, included the review of service levels for this purpose. This process requires public input to identify the communitydesired service levels and the willingness to pay for those. We know there are significant difference in levels of service provided by each lower tier municipality –thesevariances arethe result of different community needs and desired levels of service (desire/ability to pay) from the public. To furthercomplicate matters, the County has engaged a consultant for SDR and without the understanding of outcomes at that level, the lower tier review may require adjustments to services offered. Respectfully submitted, Jennifer Reynaert CAO/Deputy Clerk Page 79 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... AGENDA ITEM #(b) Five Strategic Pillars Pillar One-Dynamic, Inclusive Community Goals We create unique opportunities for individuals and families to live, work, and play. We Do This by Focusing On •Embracing our diverse culture and heritage •Creating lasting memories for our youth •Engaging people to be community leaders •Creating a safe, inclusive environment for people of all backgrounds 2020 Strategic Plan Update Council has adopted Committee mandates for the Aylmer Heritage Committee and the Environmental Advisory Committee. The recruitment process is well underway with plans to have both committees active in 2020 with staff support. Youth has been encouraged to become members of Council committees. To support youth in our community and ensurewe create lasting memories, Council is investigating options to increase library space. Additional space for County library services also supports how we embrace diverse cultures in our community. Page 80 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... AGENDA ITEM #(b) In 2021 a Parks and Recreation Master Plan update is proposed to assist Council and staff in identifying recreational facilities and programs for youth and seniors in our community. The previous plan recommendations have been implemented successfully. A new master plan will engage the public to assist in guiding the needs of the future. It will be crucial to engage all ages in this project to get input representative of the entire community. This may be optimized by engaging our neighbours to determine if an opportunity exists to share in the development of programs. A safe and inclusive community is delivered in part through the leadership of Council. Council supports this goal as a group and as individual members who are appointment as Town representatives as well as individuals on many community focus groups that improve the well being of the vulnerable population in the area. Page 81 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... AGENDA ITEM #(b) Pillar Two-Planning for the Future Goals We have a strong vision for the future, focused on opportunities for sustainability and growth. We Do This by Focusing On •Ensuring sustainability and fiscal responsibility through long-range budgeting •Ensuring adequate land for future growth •Understanding and exploring partnerships that are in the best interest of our community •Ensuring we have community facilities, assets, infrastructure, and green space to meet the needs ofthe future 2020 Strategic Plan Update Long range planning is instrumental to being sustainable and fiscally responsible. There are several projects undertaken in 2019 and proposed for 2020 that will provide the background and groundwork for future planning.The 2020 budget includes a five- yearhorizon of projects for Council consideration. Council continues to set aside funds for future asset replacement and staff are developing the Town’s asset management plan. The asset management policy was adopted by Council in 2019 as required under the legislation with the next legislative milestone to be met July 2021 (phased-in requirements shown below). Phase-in schedulefor Asset Management July 1, 2019: Date for municipalities to have a finalized strategic asset management policy that promotes best practices and links asset management planning with budgeting, operations, maintenance and other municipal planning activities. July 1, 2021: Date for municipalities to have an approved asset management plan for core assets (roads, bridges and culverts, water, wastewater and stormwater management systems) that identifies current levels of service and the cost of maintaining those levels of service. July 1, 2023: Date for municipalities to have an approved asset management plan for all municipal infrastructure assets that identifies current levels of service and the cost of maintaining those levels of service. July 1, 2024: Date for municipalities to have an approved asset management plan for all municipal infrastructure assets that builds upon the requirements set out in 2023. This includes Page 82 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... AGENDA ITEM #(b) an identification of proposed levels of service, what activities will be required to meet proposed levels of service, and a strategy to fund these activities. The 2020 budget includes various studies that will be the building blocks to both asset management condition assessment and contribution requirements as well as set the groundwork for multi year budgets. These include water and wastewater rate studies and lagoon conditions assessment. In 2021 a proposed parks and recreation master plan study will solicit public input for future projects including but not limited to a dog park, recreational programming and a cost/benefit analysis for an indoor pool. In 2016, the Town filed a lands needs study with Council with some suggested timing to ensure continued growth potential. In light of recent development success, staff is reviewing and updating the study. The updated document will be presented to Council in 2020 to enable future discussions. Page 83 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... AGENDA ITEM #(b) Pillar Three-Economic Vitality Goals Aylmer is a destination which is a crossroads of unique heritage and modern commerce. We Do This by Focusing On •Partnering with businesses for community improvement •Attracting growth through targeted initiatives •Promoting diverse housing options for our community •Sharing how good life is in Aylmer 2020 Strategic Plan Update The Town has partnered with industry (IGPC and Air Liquide) in the development of an emergency notification system calledVoyent Alert. The system has been set up with several tests having been completed. Continued public awareness and education about this system will occur to increase registered users. Talbot Street East redevelopment project has progressedwell in 2019 to ensure public safety and security of the building.As part of the Town’s commercial core, Council recognizes this downtown core area is in need of revitalization and has invited public input related to the potential future of the building. The outcomes will be reported to Council when completed. Promotional materials have been developed and distributed to local business and are available to promote the Town`s activities as needed. On-going updates are made and circulated on an annual basis. The Town has succeeded in experiencing significant growth and development both in industrial and residential areas. We are expecting further investment in Town including the development of Cottonwood Subdivision with Sifton Properties as well as further development expected on Forest Street. All Town owned industrial property is now sold with development occurring or development peinding. Plans are underway and included in the 2020 budget to continue to modernize systems to gain efficiencies. These include website redevelopment, upgrades to the financial package software, server upgrades and bar code scanner, reference plan download, fire master plan and floor plan redevelopment of Town administration office.These projects are being funded from the Modernization Fund. Additional projects with a focus of finding efficiencies will come forward for Council consideration in future budgets.The Town applied for funding to undertake a Service Delivery Review with a focus to Page 84 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... AGENDA ITEM #(b) reviewing technological upgrades as well as providing the groundwork for defining the current levels of service metrics that the Town’s infrastructure assets provide and a mechanism to analyze and adjust levels of services as will be required under Asset Management Planning for Municipal Infrastructure Regulation, O.Reg. 588/17. Council has continued to pursue support and interest in the development of new Affordable Housing projects. Recently the Town has received endorsement of support from MPP Jeff Yurekand the County of Elgin for fundingthat will allow for a second apartment building on Brown Street. Sharing the success of our community is a targeted initiative of Council. To this end, a 2019 Year in Review document has been created and published on the consent agenda for this meeting. This document contains a message from the Mayor and the many projects undertaken by Council and private industry that have contributed to a very successful year. Page 85 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... AGENDA ITEM #(b) Pillar Four-Environmental Stewardship Goals We are a leader in environmental stewardship. We Do This by Focusing On •Exploring green bin and other food waste initiatives •Promoting environmental stewardship in our community •Continuing to institute policies that support environmental stewardship •Continuing to partner with others to advance environmental stewardship in our community 2020 Strategic Plan Update The Province passed the Waste Free Ontario Act which included the Waste Diversion Transition Act and the Resource Recovery and Circular Economy Act. The Province is moving to an Extended Producer Responsibility (EPR) model. The legislation is having a major impact on municipal waste management and waste diversion programs. EPR model is a move toward a more sustainable future. This transition will be significant and will impact, to some degree, all persons in Ontario. The EPR model aims to leverage the “reduce” and “reuse” component through sustainable design that can only be driven by producers throughout the manufacturing process. In short, the EPR model goes beyond simply recycling. The goal is to have sustainable systems. Currently, theTown takes its Blue Box material to the Materials Recovery Facility (MRF) owned by the City of London. The materials are taken to the MRF for sorting and processing and are then sold at market. This partner agreement recognizes the Town not only as a customer but a partner. The EPR model will have significant impact on this arrangement. The Town will continueto support recycling programs that target on- going reductions to landfill and policies that support climate adaptation. Recently, Council finalized a mandate for an Environmental Advisory Committee. As more information becomes available about the new recycling program model, it is anticipated the committee will be in a position to assist inpublic education programs about the new recycling programs in Ontario. The 2020 budget and proposed future projects include many projects related to the lagoon operations. Lagoons are pond-like bodies of water or basins designed to Page 86 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... AGENDA ITEM #(b) receive, hold, andtreat wastewater. Much of the treatment occurs naturally without harsh chemicals. Aylmer’s lagoon system also usesaeration devices to add oxygen making treatment more efficient. Lagoon systems are an efficient and cost-effective process for sewage treatment. The maintenance projects included in the budget over the next five years are designed to ensure the system maximizes its useful life and continues to operate effectively and efficiently. Council endorsed an application to the Investing in Canada Infrastructure Program – Green Stream for the refurbishment of the Town’s standpipe as well as upgrades to the SCADA systems (computerized monitoring and control system). The systems have been identified as requiring upgrades and maintenance through both inspections and the asset management program and ensures the on-going safety of the water distribution system. Page 87 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... AGENDA ITEM #(b) Pillar Five-Public Service Excellence Goals We offer user-friendly, streamlined services through our knowledgeable, approachable staff. We Do This by Focusing On •Delivering municipal services in a safe and efficient manner •Enhancing service delivery through technological and communication improvements •Ensuring public safety through appropriate resources •Delivering on Council’s Strategic Pillars 2020 Strategic Plan Update An on-going commitment to finding efficiencies through investing in technology and human resources has been a focus for the past several years while balancing with the Town’s to pay. Technology allows enhanced service delivery without unnecessarily increasing staffing compliment. Successful succession planning has positively positioned the Town to appoint replacement staff in key areas over the past several years. This investment has ensured on-going sustainability of the many services offered to the residents and business owners in town. Service delivery improvements have been achieved through programs such as building permit systems, monitoring and managing risk, automated asset management systems, marriage licence automation and offering civil marriageceremonies, records management system that ensures that records are created in an organized and manageable method with a corporate means of storage, retrieval and disposition. Public safety is achieved through various departments including Fire, Police, By-Law Enforcement, Building Inspection and Permitting, ensuring minimum maintenance standards are accomplished, emergency management programs and exercises, public education, on-going property and equipment inspections and investing in capital replacementand refurbishment projects. The 2020 budget includes a number of projects that support public safety. Council will consider the construction of traffic lights at Talbot Street and Caverly Road to ensure the safety of pedestrians and traffic movement, a Fire Master Plan to help guide fire Page 88 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... AGENDA ITEM #(b) service in future years and the pumper truck is ordered and expected to arrive in 2020. The Town has partnered with industry (IGPC and Air Liquide) in the development of an emergency notification system called Voyent Alert. The Town will continue to promote the system through public awareness and education. Voyent Alert will be highlighted by the Fire Department at Emergency Preparedness Day scheduled in May 2020. The Town is working with City of St. Thomas and the County of Elgin in the development of a Community Safety and Well Being Plan to assist in identifying the vulnerable population and creating an inventory of local services to assist residents as risk. A fully developed plan is expected to be presented to Council in 2020. Page 89 of 325 Chief Administrative Officer/ Deputy Clerk - Report CAO 49-20 - Service ... June 12, 2020 Dear Chief Administrative Officer, ThankyouforyourparticipationintheMunicipal Modernization Program. The ministry appreciates your commitment to modernizing servicedeliveryand finding efficiencies. I am pleased to inform you that the Ministry of Municipal Affairs and Housing is extending project deadlines formunicipalitiesundertaking projects under Intake 1 of the program,in recognition that the COVID-19 outbreak has resulted in projectdelays. Despite anything to the contrary in the transfer payment agreementfor your project, you may refrain from providing the Interim Progress Report, Draft Report, Third-Party sset out below, and the Ministry waives any contractual rights under the agreement that would prevent you from doing so.Except for the deadline extensions outlined in this letter, all provisions in the agreement shall remain in full force and effect.Reporting templates are available on Transfer Payment Ontario. ReportOriginalDeadlineExtended Deadline InterimProgr Report June 15, 2020June 30, 2020 Draft ReportAugust 31, 2020November 13, 2020 Third-September 18, 2020December 4, 2020 Final ReportSeptember 18, 2020December 4, 2020 Please confirm your acknowledgment of the deadline extensionsby email to Municipal.Programs@ontario.ca.Should youhave any questions, please feel free to contact program staff at Municipal.Programs@ontario.ca or your Municipal Services Office contact. Once again, thank you for your participation in the program. Sincerely, Hannah Evans Assistant Deputy Minister c.Municipal Treasurer Project Lead Ministry ofMinistère des Municipal AffairsAffaires municipales and Housinget du Logement Office of the MinisterBureau du ministre the 777 Bay Street, 17Floor777, rue Bay, 17étage Toronto ON M7A 2J3Toronto ON M7A 2J3 Tel.: 416 585-7000Tél.: 416 585-7000 234-2020-2382 June12, 2020 Dear Heads of Council/ Clerksand CAOs: Nothing is more important than protecting the health and well-being of Ontarians. Since first learning of COVID-19, Ontario has taken decisive action to stop the spread of this deadly virus, and we thank you for your support in our efforts. that all municipalities have had to make adjustments to adapt to new priorities and shifting ways of doing business. When municipalities requested our help,we listened and acted quickly tolegislate changes to the Planning Act and make the necessary regulation to suspend decision- making timelines.These changes balanced the need to suspend thetimelines that would allow a municipality to refocus time and resources on the COVID-19 outbreak, while allowing councils to continue to make decisions on planning matters as municipal capacity evolved. As we move forward withour gradual approach that will allow Ontario to emerge from the COVID-19 outbreak, we know that getting shovels in the ground is key to moving forward on the path to economic recovery together.Many municipalities may be well on their way to a more normalized planning review process, and we want to ensure that the land use planning system time. As a result,we intend toendthe temporary suspension of the Planning Act nd timelines as ofJune 22, 2020. We understand that the safety of your constituents must remain a priority, and that there are certain provincial restrictions in place regarding public gatherings.Therefore, we encourage you to continue to useelectronic and virtual channels, as appropriate, to engage and provide the public with an opportunity to make representations on planning matters, -2- It is vital for oureconomicrecovery from thisoutbreak that we work together to help move the planning approvals process forward. We need to continue the important job of creating housing and keeping infrastructure projects movingwhile also ensuring we maintain public health. Development has always played a key role in supporting growth in our communities, and it will play an especially important role on our road to economic recoveryfrom COVID-19. Let me assure you that our government is working to support you, our municipal partners, and will continue to work collaboratively to keep all Ontarians safe. Sincerely, Steve Clark Minister c.Association of Municipalities of Ontario NOTICE OF THE PASSING OF A ZONING BY-LAW BY THE TOWN OF AYLMER TAKE NOTICE that the Council of the Corporation of the Town of Aylmer passed By-Law No. 34-20on th the15day of June, 2020, under Section 34 of the Planning Act. AND TAKE NOTICE that anyperson or agency may appeal to the Local Planning Appeal Tribunalin th respect of the By-Law by filing with the Clerk of the Town of Aylmer not later than the 14day of July, 2020, notice of appeal setting out the objection to the By-Law and the reasons in support of the objection andmust be accompanied by the $300.00 fee prescribed under the Local Planning Appeal TribunalActin the form of a cheque or money order payable to the Minister of Finance. Only individuals, corporations andpublic bodies may appeal a Zoning By-Law to the Local Planning Appeal Tribunal.A notice of appeal may be filed in the name of an individual who is a member of the association or the group. An explanation of the purpose and effect of the By-Law describing the lands to whichthe By-Law applies, and a key map showing the location of the lands to which the By-Law applies are attached. The complete By-Law is available for inspection in my office during regular office hours. th DATED at the Town of Aylmer this 24day of June, 2020. Josh Brick, Clerk Town of Aylmer 46 Talbot Street West Aylmer, Ontario N5H 1J7 Phone: (519) 773-3164 Fax: (519) 765-1446 www.aylmer.com EXPLANATORY NOTE The lands affected by the Zoning By-Law Amendment are located on the westside of Victoria Street South between Pine Street and South Street and are known municipally as 50 and 52 Victoria Street South, comprising part of Lot 75 and Lot 76,Registered Plan No. 163in the Town of Aylmer. The subject lands comprise two abutting lots with each lot having an area of approximately 339 square metres (3,649 sq. ft.), a frontage of 11.1 metres (36.4 ft) and a depth of 30.5 metres (100 ft). It is intended that the existing single detached dwellings be removed and that one-half of a semi-detached dwelling be erected on each lot. The Amendment to the Zoning By-Law changes the zoning on the subject lands from the Residential Type 1 (R1) Zone tothe Residential Type 2 (R2) Zone. Permitted uses of the R2 zone include a semi-detached dwelling, home occupation and an accessory use. Each unit in theproposed semi-detached dwelling is subject to minimum yard and setback standards as set out in Section9 of the Zoning By-law. The lands are designated ‘Low Density Residential’ in the Town of Aylmer Official Plan.Development of the subject lands will be in accordance with the residential policies of the Official Plan, specifically, Section 4.2.3(1), andall other applicable policies.The By-lawis considered to be in conformity with the relevant policies of the Official Plan. Financial Statements of ELGIN AREA PRIMARY WATER SUPPLY SYSTEM And Independent Auditors’ Report thereon Year ended December 31, 2019 INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Elgin Area Primary Water Supply System Opinion We have audited the financial statements of Elgin Area Primary Water Supply System (the “Entity”), which comprise: the statement of financial position as at December 31, 2019 the statement of operations and accumulated surplus for the year then ended the statement of changes in net debt for the year then ended the statement of cash flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies (Hereinafter referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Entity as at December 31, 2019, and its results of operations, its changes in net debt and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’ report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Entity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity’s financial reporting process. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Entity to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Chartered Professional Accountants, Licensed Public Accountants London, Canada June 4, 2020 ELGIN AREA PRIMARY WATER SUPPLY SYSTEM Statement of Financial Position December 31, 2019, with comparative information for 2018 20192018 Financial assets Due from the Corporation of the City of London (note 3)$10,613,374$9,700,078 Trade and other receivables1,089,1872,122,110 Long-term loan receivable (note 9)206,543229,190 Total financial assets11,909,10412,051,378 Financial liabilities Accounts payable and accrued liabilities1,045,9902,163,740 Accrued interest on long-term debt89,283102,436 Long-term debt (note 4)12,107,32314,269,676 Total financial liabilities13,242,59616,535,852 Net debt(1,333,492)(4,484,474) Non-financial assets Tangible capital assets (note 5)66,699,79068,147,998 Prepaid expenses116,08686,181 Total non-financial assets66,815,87668,234,179 Accumulated surplus (note 6)$65,482,384$63,749,705 Subsequent events (note 10) See accompanying notes to financial statements ELGIN AREA PRIMARY WATER SUPPLY SYSTEM Statement of Operations and Accumulated Surplus Year ended December 31, 2019, with comparative information for 2018 Budget20192018 (Note 8) Revenues User charges$ 12,524,031$ 12,974,247$ 12,403,077 Investment income 6,000 256,607 182,352 Transfer payments Provincial - - 860,379 Federal - - 1,060,358 Other (note 9) 4,000 24,868 129,815 Total revenues 12,534,031 13,255,722 14,635,981 Expenses Salaries, wages and benefits 723,794 765,473 667,733 Materials and supplies 5,532,719 5,898,379 5,560,667 Contracted services 88,600 797,667 548,747 Rents and financial expenses 57,500 66,618 57,239 Interest on long-term debt (note 4) 336,854 336,853 436,484 Amortization of tangible capital assets (note 5) - 3,444,594 3,471,860 Administrative charges 213,459 213,459 208,252 Total expenses 6,952,926 11,523,043 10,950,982 Annual surplus 5,581,105 1,732,679 3,684,999 Accumulated surplus, beginning of year (note 6) 63,749,70563,749,70560,064,706 Accumulated surplus, end of year (note 6)$ 69,330,810$ 65,482,384$ 63,749,705 See accompanying notes to financial statements ELGIN AREA PRIMARY WATER SUPPLY SYSTEM Statement of Change in Net Debt Year ended December 31, 2019, with comparative information for 2018 Budget20192018 (Note 8) Annual surplus$ 5,581,105$ 1,732,679$ 3,684,999 Acquisition of tangible capital assets(5,804,000) (1,996,385) (2,113,402) Amortization of tangible capital assets- 3,444,594 3,471,860 (222,895) 3,180,888 5,043,457 Change in prepaid expenses- (29,906) 6,448 Change in net debt(222,895) 3,150,982 5,049,905 Net debt, beginning of year(4,484,474) (4,484,474) (9,534,379) Net debt, end of year(4,707,369)$ $ (1,333,492)$ (4,484,474) See accompanying notes to financial statements ELGIN AREA PRIMARY WATER SUPPLY SYSTEM Statement of Cash Flows Year ended December 31, 2019, with comparative information for 2018 20192018 Cash provided by: Operating activities: Annual surplus$ 1,732,679$ 3,684,999 Items not involving cash: Amortization of tangible capital assets 3,444,594 3,471,860 Amortization of debenture discount 15,178 27,783 Changes in non-cash assets and liabilities: Due from (due to) the Corporation of the City of London (913,296) (271,041) Prepaid expenses (29,906) 6,448 Trade and other receivables 1,032,923 (1,079,036) Accounts payable and accrued liabilities (1,117,749) 418,163 Deferred revenue - (860,379) Accrued interest on long-term debt (13,153) (32,486) Net change in cash from operating activities4,151,270 5,366,311 Capital activities: Purchase of tangible capital assets (1,996,385) (2,113,402) Cash used in capital activities(1,996,385) (2,113,402) Financing activities: Long-term debt repayments (2,177,530) (3,023,719) Loan receivables 22,645 (229,190) Cash provided by financing activities(2,154,885) (3,252,909) Net change in cash flows$ --$ See accompanying notes to financial statements ELGIN AREA PRIMARY WATER SUPPLY SYSTEM Notes to Financial Statements Year ended December 31, 2019 1. Nature of reporting entity The Ontario Water Resources Commission (the “Commission”) of the Province of Ontario constructed, owned and operated a water treatment plant on Lake Erie and pipeline to the City of St. Thomas and the Ford Talbotville Assembly Plant on or about 1967. The Ministry of the Environment (the “Ministry”) was created in about 1973 and assumed all operations and activities of the Commission. In or about 1991, operational related activities (water and wastewater systems) of the Ministry were transferred to the Ontario Clean Water Agency, a Crown corporation of the Province of Ontario. In accordance with agreements with the associated municipalities, the Ministry extended pipelines to the present communities of Port Burwell, Port Stanley, and Southwold, and in 1996 to the City of London and the Town of Aylmer. In accordance with the Municipal Water and Sewage Systems Transfer Act, 1997, the final Transfer Order for Elgin Area Primary Water Supply System (the “Entity”) was effective on November 29, 2000. Under the transfer order, the works, properties and all assets, liabilities, rights and obligations of the system were transferred jointly to The Corporation of the City of London, The Corporation of the Town of Aylmer, The Corporation of the Municipality of Bayham, The Corporation of the Municipality of Central Elgin, The Corporation of the Township of Malahide, The Corporation of the Township of Southwold and The Corporation of the City of St. Thomas. The Corporation of the City of London (the “Corporation”) was named as the administering municipality. The Corporation of the Municipality of Dutton Dunwich joined the joint board of management in 2018. The appointment and voting structure was approved in the December 2019 board meeting. The transfer order established a joint board of management to govern the management of the water supply system. The joint board of management is comprised of seven members appointed by the respective councils of participating municipalities. The Board composition is as follows: Municipality Members Votes The Corporation of the City of London 3 3 The Corporation of the City of St. Thomas 2 2 The Corporations of the Township of Southwold, the Municipality of Central Elgin and the Municipality of Dutton Dunwich (acting jointly) 11 The Corporations of the Township of Bayham, Township of Malahide and Town of Alymer (acting jointly) 11 ELGIN AREA PRIMARY WATER SUPPLY SYSTEM Notes to Financial Statements Year ended December 31, 2019 2. Significant accounting policies The financial statements of the Entity are prepared by management in accordance with Canadian generally accepted accounting principles as defined in the CPA Canada Public Sector Handbook - Accounting. Significant accounting policies are as follows: (a) Accrual accounting Sources of financing and expenses are reported on the accrual basis of accounting. (b) Non-financial assets Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. i) Tangible capital assets Tangible capital assets are recorded at cost which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital assets, excluding land, are amortized on a straight line basis over their estimated useful lives as follows: Asset Useful Life - Years Buildings and building improvements 15 – 40 Vehicles 5 – 15 Machinery and equipment 7 – 20 Water infrastructure 10 – 60 Computers 3 Annual amortization is charged in the year of acquisition and in the year of disposal using the half year rule. Assets under construction are not amortized until the asset is available for productive use. ii) Interest capitalization The interest costs associated with the acquisition or construction of a tangible capital asset are not capitalized. ELGIN AREA PRIMARY WATER SUPPLY SYSTEM Notes to Financial Statements Year ended December 31, 2019 2. Significant accounting policies (continued) (c) Revenue recognition The Entity recognizes revenue when water is drawn by each customer, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. (d) Government transfers Government transfer payments to the Corporation are recognized in the financial statements in the year in which the payment is authorized and the events giving rise to the transfer occur, performance criteria are met, and a reasonable estimate of the amount can be made. Funding that is stipulated to be used for specific purposes is only recognized as revenue in the fiscal year that the related expenses are incurred or services performance. If funding is received for which the related expenses have not yet been incurred or services performed, these amounts are recorded as a liability at year end. (e) Use of estimates The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Significant items subject to such estimates and assumptions include the valuation allowances for receivables and useful lives assigned to tangible capital assets. Actual results could differ from those estimates. (f) Budget figures Budget figures have been provided for comparison purposes. Given differences between the budgeting model and generally accepted accounting principles established by the Public Sector Accounting Board (“PSAB”), certain budgeted amounts have been reclassified to reflect the presentation adopted under PSAB. (g) Liability for contaminated sites Under PS 3260, contaminated sites are defined as the result of contamination being introduced in air, soil, water or sediment of a chemical, organic, or radioactive material or live organism that exceeds an environmental standard. This Standard relates to sites that are not in productive use and sites in productive use where an unexpected event resulted in contamination. 3. Due from the Corporation of the City of London As the Administering Municipality, the Corporation manages the daily operations of the Entity. The Corporation maintains a separate general ledger on behalf of the Entity. All funds are paid and received through the Corporation’s bank account and held for use by the Entity or payable to the Corporation for expenses paid on behalf of the Entity. ELGIN AREA PRIMARY WATER SUPPLY SYSTEM Notes to Financial Statements Year ended December 31, 2019 4. Long-term debt (a) Long-term debt is stated as follows: 2019 2018 Long-term debt assumed by The Corporation of the City of London, as administering municipality, on behalf of the Elgin Area Primary Water Supply System, with semi-annual interest payments: (a) at rates ranging from 2.70% to 3.20%, $ 3,426,450 $ 4,513,350 maturing September 2022. 5,711,481 (b) at rates ranging from 1.40% to 2.70%, 5,047,259 maturing March 2026. (c) at rates ranging from 1.30% to 2.85%, 3,709,506 4,135,914 maturing March 2027. Total long-term debt 12,183,215 14,360,745 Less: Unamortized debenture discount (75,892) (91,069) Net long-term debt $ 12,107,323 $ 14,269,676 (b) The long-term debt repayment schedule is as follows: 2020 $ 2,223,979 2021 2,272,512 2022 2,323,163 2023 1,176,125 2024 1,201,240 2025 and beyond 2,986,196 ELGIN AREA PRIMARY WATER SUPPLY SYSTEM Notes to Financial Statements Year ended December 31, 2019 4. Long-term debt (c) Total interest charges for the year for long-term debt which are reported on the Statement of Operations and Accumulated Surplus are as follows: 2019 2018 Interest $ 321,675 $ 408,701 Amortization of debenture discount 27,783 15,178 $ 336,853 $ 436,484 5. Tangible capital assets Balance at Balance at December 31, December 31, Cost 2018 AdditionsDisposals 2019 Land $ 1,251,559 $ - $ - $ 1,251,559 Buildings and building 29,346,451 627,211 21,317 29,952,345 improvements Machinery and equipment 34,633,548 757,228 416,391 34,974,385 Vehicles 32,425 - 20,898 11,527 Water infrastructure 25,699,667 --25,699,667 Computers 89,732 --89,732 Assets under construction 357,471 686,610 74,663 969,418 Total $ 91,410,853 $ 2,071,049 $ 533,269 $ 92,948,633 Balance at Balance at December 31, Amortization December 31, Accumulated Amortization 2018 expense Disposals 2019 Land $ - $ - $ - $ - Buildings and building 6,816,869 885,411 21,317 7,680,963 improvements Machinery and equipment 12,411,794 2,000,382 416,391 13,995,785 Vehicles 23,369 1,646 20,898 4,117 Water infrastructure 3,995,827 527,245 -4,523,072 Computers 14,996 29,910 -44,906 Assets under construction ---- Total$ 23,262,855 $ 3,444,594 $ 458,606 $ 26,248,843 ELGIN AREA PRIMARY WATER SUPPLY SYSTEM Notes to Financial Statements Year ended December 31, 2019 5. Tangible capital assets (continued) Net book value Net book value December 31, 2018 December 31, 2019 Land $ 1,251,559 $ 1,251,559 Buildings and building improvements 22,529,582 22,271,382 Machinery and equipment 22,221,754 20,978,600 Vehicles 9,056 7,410 Water infrastructure 21,703,841 21,176,595 Computers 74,735 44,826 Assets under construction 357,471 969,418 Total$ 68,147,998 $ 66,699,790 (a) Assets under construction Assets under construction with a net book value of $969,418 (2018 - $357,471) have not been amortized. Amortization of these assets will commence when the asset is available for productive use. (b) Tangible capital assets disclosed at nominal values Where an estimate of fair value could not be made, the tangible capital asset was recognized at a nominal value. Land is the only category where nominal values were assigned. (c) Write-down of tangible capital assets There were no write-downs in tangible capital assets during the year. ELGIN AREA PRIMARY WATER SUPPLY SYSTEM Notes to Financial Statements Year ended December 31, 2019 6. Accumulated surplus Accumulated surplus consists of individual fund surplus and reserve funds as follows: 2019 2018 Surplus: Invested in tangible capital assets $ 53,675,606 $ 53,353,315 Total surplus 53,675,606 53,353,315 Reserve funds set aside for specific purpose by the Board: Infrastructure renewal - water operations 10,396,390 11,806,778 Total reserve funds 10,396,390 11,806,778 $ 63,749,705 $ 65,482,384 7. Financial instruments (a) The carrying values of due from the Corporation of the City of London, trade accounts receivable and accounts payable and accrued liabilities approximate their fair values due to the relatively short periods to maturity of the instruments. The fair value of long-term debt approximates its carrying value as interest rates are similar to current market rates of interest available to the Entity. (b) Financial risks: The Entity is not exposed to any significant interest, foreign currency or credit risks arising from its financial instruments. ELGIN AREA PRIMARY WATER SUPPLY SYSTEM Notes to Financial Statements Year ended December 31, 2019 8. Budget data Budget data presented in these financial statements are based upon the 2019 operating budget approved by the joint board of management. Adjustments to budgeted values were required to provide comparative budget values based on the full accrual basis of accounting. The chart below reconciles the approved budget with the budget figures as presented in these financial statements. Budget Revenues: User Charges $ 12,524,031 Municipal Revenue - Other 10,000 Total Revenues 12,534,031 Expenses: Personnel Costs 681,294 Administrative Expenses 62,500 Financial Expenses – Other 160,000 Financial Expenses – Interest and Discount on Long-term Debt 336,854 Financial Expenses – Debt Principal Repayments 2,177,530 Financial Expenses – Transfers to Reserves and Reserve Funds 3,403,575 Purchased Services 365,914 Materials and Supplies 5,098,155 Furniture and Equipment 34,750 Other Expenses 213,459 Total Expenses 12,534,031 Annual Surplus (Deficit) as per Budget $ - PSAB Reporting Requirements: Transfers to Reserves and Reserve Funds $ 3,403,575 Debt Principal Repayments 2,177,530 Net PSAB Budget Surplus as per Financial Statements $ 5,581,105 ELGIN AREA PRIMARY WATER SUPPLY SYSTEM Notes to Financial Statements Year ended December 31, 2019 9. Loan receivable 2019 2018 Buy-in Charge Loan – Municipality of Dutton Dunwich $ 206,543 $ 229,190 Interest Earned on Loan at prime rate less 1.53% 5,353 5,190 Effective January 1, 2018, the Municipality of Dutton Dunwich entered into a four-party water supply agreement with the Township of Southwold, the St. Thomas Secondary Water Supply System, and the Elgin Area Water Supply System resulting in a buy-in charge of $252,000. Dutton Dunwich has requested and the Elgin Board has consented to payment of this buy-in charge over a 10 year term bearing interest on the outstanding amount. During the year, $22,647 was received as payment on the loan. This loan is paid quarterly and will mature in December 2027. 10. Subsequent events Subsequent to December 31, 2019, the COVID-19 outbreak was declared a pandemic by the World Health Organization and has had a significant financial, market and social dislocating impact. At the time of approval of these financial statements, the entity has experienced the following indicators of financial implications and undertaken the following activities in relation to the COVID- 19 pandemic: Due to the Province of Ontario’s declaration of a State of Emergency Order and the temporary closure of non-essential business and restrictions in activities, consumption within the municipalities served by the water system has moderately declined. Lower water demand volumes within the municipalities may result in lower expenditures The Regional Water Supply office has remained open but reduced their staffing compliment on premises from March 18, 2020 to the date of the auditors’ report based on public health recommendations Implemented voluntary working from home strategy in service delivery Modifications to shift coverage and work-isolations to minimize risks to operating staff at the water treatment plants At this time, these factors present uncertainty over future cash flows, may cause significant changes to the assets or liabilities and may have a significant impact on future operations. An estimate of the financial effect is not practicable at this time.